In India, there are two stock exchange markets i.e. Bombay Stock Exchange and National Stock Exchange.
Bombay Stock Exchange
National Stock Exchange
(Image source: BSE & NSE Google)
|3000 + Companies Listed||5000+ Companies Listed|
|The index is known as SENSEX||The index is Known as NIFTY|
|The index is calculated on “ BSE 30”||The index is calculated on “NSE 50”|
|“ BSE 30” means Top 30 company under BSE||“NSE 50” means Top 50 Company under NSE|
|Founded in 1980||Founded in 1996|
|Example: Reliance Industries Ltd., Oil, and Natural Gas Corporation Ltd., etc.||Bharat Petroleum Corporation, Oil and Natural Gas Corporation Ltd., etc.|
|Bothe BSE & NSE Timing: Monday to Friday: 9:15 to 3:30|
Role of SEBI
Security Exchange Board of India (SEBI) handles the securities and Commodity markets decisions owned by the Government of India. It was established on 12 April 1988.
- Power to regulate stock exchange.
- Power to control stock exchange.
- Power to declare applicability of section 17 of the securities contract (Regulation) Act 1956, in any state or area, to grant licenses to dealers in the securities.
- Power to direct enquiries to be made in relation to affairs of stock exchange.
- Power to compel listing of securities by public companies.
- SEBI fixed the time of trading 9:15 am to 3:30pm, Monday to Friday in stock market.
- To stop fraud in Capital Market.
Functions of SEBI:
- Setting Rule for stock exchange.
- Taking care of Investor.
- Audit to companies if fraud found.
- Observe trader, broker and sub broker.
- Observe movement of company.
What is DEMAT ACCOUNT?
A Demat Account is an Account to Hold/ Store the shares of the company in Digital Format. One account can hold various investments like shares, commodities, mutual funds in digital format.
Types of Demat Account:
Regular Demat Account:
- Single: Use only single holder.
- Joint: It is generally used for family member.(Sharing the Stock)
Repatriable Demat Account:
The repatriable account is useful to the Non-Resident Indians as it allows fund transfers abroad. It requires an associated NRE bank account.
Non-Repatriable Demat Account:
Non-Repatriable account, too, is for the Non-Resident Indians. However, in this case, funds cannot be transferred abroad, and this account requires an associated NRO bank account.
Samco, eddles wise, etc.
Bank with Brokers:
Set up for Trade:
Trading Account for buying and selling of shares with any SEBI registered Broker or Sub Broker.
Demat Account for hold and transfer of shares with any authorized depository participant of NSDL/CDSL (PAN).
Saving Account is for to Pay and Receive funds (Our Bank Account).
Documents’ requirements for opening DEMAT Account:
Offline & Online
- Passport size photo
- PAN Card
- Aadhar Card
- Cancel Cheque with name print on cheque / 6 Month Bank Statement.
- Email & Mobile Number( Bank Attached)
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